Petco Health & Wellness Company, Inc. Files 2024 10-K Report

TL;DR

<b>Petco Health & Wellness Company, Inc. has filed its 2024 10-K report detailing its annual financial performance and business operations.</b>

AI Summary

Petco Health & Wellness Company, Inc. (WOOF) filed a Annual Report (10-K) with the SEC on April 3, 2024. Petco Health & Wellness Company, Inc. filed its annual 10-K report for the fiscal year ending February 3, 2024. The filing covers the company's financial performance and business operations. Key financial data and risk factors are detailed within the report. The report includes information on executive compensation and various financial metrics. Petco operates within the retail sector, specifically focusing on pet health and wellness.

Why It Matters

For investors and stakeholders tracking Petco Health & Wellness Company, Inc., this filing contains several important signals. Investors can assess Petco's financial health, profitability, and debt levels through the detailed financial statements and disclosures. The report provides insights into the company's strategic direction, operational risks, and management's outlook for the future.

Risk Assessment

Risk Level: — Petco Health & Wellness Company, Inc. shows moderate risk based on this filing. The company faces market risks related to competition and consumer spending, as well as operational risks in managing its retail footprint and supply chain, as indicated by the comprehensive risk factor disclosures in the 10-K.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Petco's current financial position and future outlook.

Key Numbers

• 2024-02-03 — Fiscal Year End (End date of the reporting period)
• 2024-04-03 — Filing Date (Date the 10-K was filed)

Key Players & Entities

• Petco Health & Wellness Company, Inc. (company) — Filer of the 10-K report
• WOOF (company) — Ticker symbol for Petco Health & Wellness Company, Inc.

FAQ

Industry Context

Petco operates in the highly competitive pet retail industry, which includes both brick-and-mortar stores and e-commerce platforms.

Regulatory Implications

The company is subject to various regulations common to retail businesses, including those related to product safety, consumer protection, and employment.

What Investors Should Do

1. Analyze Petco's revenue streams and growth drivers for the fiscal year.
2. Evaluate the company's debt structure and liquidity position.
3. Assess the identified risks and management's mitigation strategies.

Key Dates

• 2024-02-03: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-04-03: Filing Date — Date Petco Health & Wellness Company, Inc. submitted its 10-K.

Year-Over-Year Comparison

This filing represents the annual 10-K report, providing a comprehensive overview of the company's performance for the fiscal year ending February 3, 2024.

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 per share WOOF The Nasdaq Stock Mar

Filing Documents

• woof-20240203.htm (10-K) — 3101KB
• woof-ex10_31.htm (EX-10.31) — 2931KB
• woof-ex23.htm (EX-23) — 4KB
• woof-ex31_1.htm (EX-31.1) — 16KB
• woof-ex31_2.htm (EX-31.2) — 16KB
• woof-ex32_1.htm (EX-32.1) — 9KB
• woof-ex32_2.htm (EX-32.2) — 9KB
• woof-ex97.htm (EX-97) — 27KB
• img92738018_0.jpg (GRAPHIC) — 59KB
• img92738018_1.jpg (GRAPHIC) — 27KB
• img114186723_0.jpg (GRAPHIC) — 1389KB
• 0000950170-24-040516.txt (&nbsp;) — 19581KB
• woof-20240203.xsd (EX-101.SCH) — 1902KB
• woof-20240203_htm.xml (XML) — 2324KB

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 41 Item 1C. Cybersecurity 41 Item 2.

Properties

Properties 42 Item 3.

Legal Proceedings

Legal Proceedings 42 Item 4. Mine Safety Disclosures 43 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44 Item 6. [Reserved] 46 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 63 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 64 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 100 Item 9A.

Controls and Procedures

Controls and Procedures 100 Item 9B. Other Information 100 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 101 PART III Item 10. Directors, Executive Officers and Corporate Governance 102 Item 11.

Executive Compensation

Executive Compensation 102 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 102 Item 13. Certain Relationships and Related Transactions, and Director Independence 102 Item 14. Principal Accounting Fees and Services 102 PART IV Item 15. Exhibits, Financial Statement Schedules 103 Item 16. Form 10-K Summary 107

Signatures

Signatures 108 1 Note on the Presentation Unless otherwise indicated or the context otherwise requires, references in this Annual Report on Form 10-K to (i) "Petco," "our company," "we," "our," and "us," or like terms, refer to Petco Health and Wellness Company, Inc. and/or its subsidiaries, individually and/or collectively, and (ii) "common stock" refer to our Class A common stock, our Class B-1 common stock and our Class B-2 common stock, collectively. References to our certificate of incorporation and bylaws are to our second amended and restated certificate of incorporation, as amended, and our second amended and restated bylaws, respectively. We are currently indirectly controlled by certain funds (the "CVC Funds") that are advised and/or managed by CVC Capital Partners ("CVC") and Canada Pension Plan Investment Board, a Canadian company (together with its affiliates, "CPP Investments" and, together with the CVC Funds, our "Sponsors"). Our Sponsors primarily exercise their control through Scooby Aggregator, LP (our "Principal Stockholder"). We report on the basis of a 52- or 53-week fiscal year, which ends on the Saturday closest to January 31. References to "fiscal year" mean the year in which that fiscal year began. For example, references to fiscal 2023 refer to the fiscal year beginning January 29, 2023 and ending February 3, 2024. Industry and Market Data This Annual Report on Form 10-K includes market data and forecasts with respect to the pet care industry. Although we are responsible for all of the disclosure contained in this Annual Report on Form 10-K, in some cases we rely on and refer to market data and certain industry forecasts that were obtained from third-party surveys, market research, consultant surveys, publicly available information and industry publications and surveys that we believe to be reliable. Unless otherwise indicated, all market and industry data and other statistical information and forecasts contained in this Ann

B usiness

Item 1. B usiness . Our Company Founded in 1965, Petco is a pet health and wellness company focused on improving the lives of pets, pet parents, and our own Petco partners. Building on nearly 60 years of providing solutions for pets and the people who love and care for them, we serve our customers as a fully-integrated, omnichannel provider of pet health and wellness products, services, and solutions. Through our ecosystem, we provide our customers with a comprehensive offering of products and services to fulfill their pets' health and wellness needs through our 1,423 pet care centers in the U.S. and Puerto Rico, our digital channel, and our flexible fulfillment options. We also operate 131 pet care centers in Mexico and 2 in Chile through a joint venture. Our product offering leverages a broad assortment of national, owned brand, and exclusive merchandise, providing customers with a wide variety of nutritional options, including health-focused options free from artificial ingredients, complemented by a wide variety of pet care supplies and companion animals. While we offer pet parents a full spectrum of product choices, we maintain a number of premium products to address ongoing humanization and premiumization trends in the market. In addition, our owned product assortment, such as WholeHearted, Reddy, and Well & Good, serves as a significant driver of sales, customer loyalty, and repeat purchasing and was a meaningful contributor to enterprise sales in fiscal 2023. We integrate our product offering with our services business, building on the foundation of treating the whole pet, including their physical, mental, and social well-being. Our service offering includes veterinary care, grooming, and training. Leveraging our experience in Vetco mobile clinics, we operate a network of full service, general practice veterinary hospitals complemented by prescription and insurance offerings. As of February 3, 2024, we operated 288 full service veterinary hospitals,

View Full Filing

View this 10-K filing on SEC EDGAR